Plans for Sullivan multiplex movie theater still stalled

KIAMESHA LAKE — The would-be developer of a multiplex cinema off Route 42 in Sullivan County said his plans are stalled because of the uncertain ownership and management of the Thompson Square Mall.

Victor Whitman

KIAMESHA LAKE — The would-be developer of a multiplex cinema off Route 42 in Sullivan County said his plans are stalled because of the uncertain ownership and management of the Thompson Square Mall.

James Kula, who owns the Middletown Cinemas on Dolson Avenue, said he's been in limbo for months waiting for the roof to be replaced above the 11,500-square-foot segment of the Sullivan strip mall.

The cinema owner said he spent about $200,000 demolishing the interior of the former theater and recently obtained final approval from the Town of Thompson's Planning Board to build six movie theaters, a game room and lobby.

"We would like to open up there, but we don't know when," Kula said. "Right now, it is in nobody's hands."

State and local officials attended a groundbreaking last April outside the theater that was arranged by Kula's contractor.

Kula himself tried to remain anonymous but was revealed as the mystery developer this fall after the project stalled. This would be the only multiplex in Sullivan County. Kula was expected to hire approximately 10 people and invest close to $5 million.

Kula said he was aware of leaks when he signed a long-term lease but was assured by Phillips Edison & Co. that it would be fixed. His contractors discovered more leakwhile gutting the former theater and he complained to the owners and Thompson officials.

Town officials inspected the roof in November and issued violations to the owner of record, Thompson Station Inc., a company created by Phillips Edison. Town officials said they haven't had any response and indicated this week they don't know who controls the purse strings of the property at the mall, which includes a Home Depot, ShopRite and Staples.

"It needs a new roof," town engineer Richard McGoey said. McGoey said the roof deck over the proposed cinema is rusted and needs to be peeled off and replaced.

Kula said he has been notified by U.S. Bank N.A. that the mall property is in receivership under the management of Ann Arbor, Mich.-based McKinley Management.

Town Supervisor Tony Cellini said he was notified the town's old contact with Clay Ralston of Phillips Edison had been replaced. The town's new contact is with McKinley's Miles McFee.

McFee didn't return several calls. Phillips Edison's director of marketing, Linda Fatherree, initially said via email she would check on the status of the mall ownership and roof. She did not return subsequent emails sent days later.

"I don't think it is dead," Cellini said of the project. "I think there is a glimmer of hope there. We have to find out the ownership and what their plan is."

Kula said he can wait only so long before looking for other investment opportunities.